FRANKFURT Jan 29 German market research group
GfK has uncovered clues that may point to tax fraud in
its operations in Turkey and estimates damages could amount to
21 million euros ($28.3 million).
"GfK has discovered incidents of suspected tax evasion in
its Turkish subsidiary. Initial findings indicate that former
local management in Turkey collaborated to defraud GfK through
tax and social security avoidance schemes over several years,"
the company said late on Tuesday.
"GfK has voluntarily self-reported this matter to the
authorities in Turkey for the period in question," it added.
The company pledged to work with local authorities in Turkey
and will explore potential criminal and civil charges against
the former Turkish management team and other responsible
GfK said it would book a one-off provision of 21 million
euros in its 2012 accounts to cover potential historic tax and
social security financial obligations at its the Turkish
subsidiary, GfK Arastirma Hizmetleri.
"The adjusted operating income will not be affected and is
in line with expectations," the company added.
($1 = 0.7420 euros)
(Reporting By Christiaan Hetzner; editing by Andrew Hay)